Vat Rates Explained: Standard, Reduced, Zero, Exempt

In: Business and Management

Submitted By cora18
Words 991
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VAT rates explained: standard, reduced, zero, exempt
Different rates of VAT apply to different types of goods and services, and there are some goods and services that aren't taxable for VAT at all. So you need to know whether VAT applies to the goods or services you sell and how much to charge.
You also need to know the right amount of VAT to reclaim on what you buy, because you can only claim back what you should have been charged - if your supplier charges you too much, you can't claim all of it back.
This guide tells you about the different rates of VAT and how to work out the VAT you should charge. It also tells you about goods or services that are exempt from VAT, or outside the scope of VAT.
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On this page: * VAT rates * Standard rate of VAT * Reduced rate of VAT - what it applies to * Zero rate of VAT - what it applies to * When VAT mustn't be charged * How to find the right VAT rate for particular goods and services
VAT rates
If you're registered for VAT, you have to charge VAT at the standard rate on all goods and services you supply, unless they fall into one of these categories: * zero-rated * reduced-rated * exempt from VAT * outside the scope of VAT
For more information on what's exempt from VAT or outside the scope, see the section in this guide on when VAT mustn't be charged.
There are currently three rates of VAT: * standard rate - currently 20 per cent * reduced rate - currently 5 per cent * zero rate - this is not the same as exempt or outside the scope of VAT

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Standard rate of VAT
If you are registered for VAT, you have to charge VAT at the standard rate on all goods and services you supply, unless they fall into another category. See the section in this guide on VAT rates.…...

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